CCR Final Rule Utility Perspective on Key Compliance Items

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1 Utility Perspective on Key Compliance Items 1. Favorable Aspects 2. Challenges 3. Applicability 4. States Involvement

2 Favorable Aspects CCRs regulated as non-hazardous waste No mandatory closure of unlined CCR ponds Ability to obtain closure extensions for ponds Ability to defer closure when lack of capacity exist Keeps market open for ash to be safely managed and recycled for concrete, road building and other beneficial uses. Unlined ponds can continue to operate as long as the technical criteria are met In some cases, it would be difficult to complete pond closure within 5 years. Allowing possibility for closure extensions gives flexibility to account for site-specific circumstances and for factors beyond facility's control: 1. Complications due to climate & weather 2. Time required to dewater pond 3. Geology and terrain 4. Time required or delays to obtain State permits If this can be demonstrated, the CCR unit may continue receiving CCR for up to 5 years or until disposal capacity is available before initiating closure

3 Challenges Tough Road Ahead SELF-IMPLEMENTED Instead of meeting a state schedule or program for compliance the owner/operator will be responsible for having a professional engineer certify all necessary compliance reporting and documentation, and then post all required datasets on the Company s publicly available webpage. State Permit program not required RCRA CITIZEN SUITS Non-compliance enforced in federal district court DUAL REGULATORY PATH Even if states were to adopt the federal criteria, utilities would comply with both the state and federal rule EPA defers Final Bevill Determination ALTERNATIVE CLOSURE The omission of any consideration of non- CCR waste streams in evaluating whether a unit can qualify for the rule s Lack of Alternative Disposal Capacity

4 CCR Rule Applicability Main Points: Is the pond located at an active power plant (of any fuel type) on October 19, 2015? Opportunities exist for CCR ponds to fall outside of the federal rule: Is the pond closed? (dewatered, capped and maintained) Has the pond ceased receiving CCR* prior to the October 19, 2015? *Pond can continue to receive WW Will the pond complete closure (dewater & cap) by April 17, 2018? See notification requirements (c) POND T SUBJECT TO FINAL RULE (does not exclude compliance with state regulations) Plants completely retired prior to October 19, 2015 Closed inactive CCR ponds All applicable state rules apply and do not operate in lieu of the federal rule SUBJECT TO THE FINAL RULE

5 Compliance Road Map Main Points: Does the pond meet specified safety factor for structural stability? Is the pond lined? POND CAN REMAIN OPEN (subject to and must maintain compliance with all Subpart D compliance requirements) Ponds can remain open when meeting all technical criteria Does groundwater monitoring trigger corrective action? Does groundwater monitoring trigger corrective action? Does the pond meet location restrictions? Start Corrective Measures & Meet GW Protection Standards Ponds not meeting safety factors for structural stability, groundwater exceedances, or location restrictions are forced to close Application of corrective measures to meet GWPS not afforded to unlined surface impoundments PROCEED TO POND CLOSURE